Brunei Darussalam

Southeast Asian country consisting of two unconnected parts

Total area of 5,765 square kilometres

Neighbours: Malaysia, South China Sea

Capital Bandar Seri Begawan

Climate:  Tropical Equatorial ; Hot, Humid, Rainy (Average annual temperature is 26.1 °C)

GEOGRAPHY

Natural Resources : Petroleum, Natural Gas, Timber

Natural Hazards: Typhoons and Earthquakes

Close to vital sea lanes through South China Sea linking Indian and Pacific Oceans; two parts physically separated by Malaysia; almost an enclave within Malaysia

Location

HistoryThe Sultanate of Brunei ruled during the fourteenth to the sixteenth century CE.

Its territory allegedly covered the northern part of Borneo and the southern Philippines. 

European influence gradually brought an end to this regional power. Later, there was a brief war with Spain, in which Brunei was victorious.

The decline of the Bruneian Empire culminated in the nineteenth century when Brunei lost much of its territory to the White Rajahs of Sarawak, resulting in its current small landmass and separation into two parts.

Brunei was a British protectorate from 1888 to 1984.

Gained independence on 1st January, 1984 from UK

Govt. Type: Constitutional Sultanate (Malay Islamic Monarchy)

Legal System is a mix of English Common Law and Islamic Law

Chief of state: Sultan and Prime Minister Sir HASSANAL Bolkiah (since 5 October 1967)

Monarch is both the chief of state and head of government

Council of Cabinet Ministers appointed and presided over by the monarch

No Elections: The Monarch is hereditary

Government

Mixture of foreign and domestic entrepreneurship, government regulation, welfare measures, and village tradition

Crude oil and Natural Gas production account for about 90% of its GDP

Fourth largest producer of oil in South-east Asia

Depends heavily on imports of products like Agriculture, Motorcars and Electrical Products

Imports 60% of its food requirements, which around 75% of those food imports come from the ASEAN countries

Economy

Brunei's leaders are very concerned that steadily increased integration in the world economy will undermine internal social cohesion.

But, it has become a more prominent player by serving as chairman for the 2000 Asia-Pacific Economic Cooperation (APEC) forum.

Leaders plan to upgrade the labour force, reduce unemployment, which currently stands at 6%; strengthen the banking and tourism sectors, and, in general, broaden the economic base.

GDP PPP (2011) - $21.24 Billion

GDP Real Growth Rate (2011) – 1.9% ; 2.6% in 2010

GDP Per Capita (2011) - $50000

Unemployment Rate (2010) – 2.7%

Inflation Rate at CPI (2011) – 2%

1%

67%

33%

GDP Compo-sition

AgricultureIndustryServices

Petroleum

Petroleum Refining

Construction

Liquefied Natural Gas

Major industries

50%

18%

13%

9%5% 5%

Export Partners

JapanSouth KoreaAustraliaIndonesiaIndiaChina

•Total Exports - $10.67 Billion (2008)•Export Commodities – Crude Oil, Natural Gas, Garments

Exports From Brunei

41%

19%15%

13%

12%

Import Partners

SingaporeChinaSouth KoreaMalaysiaGermany

•Total Imports - $2.61 Billion (2008)•Import Commodities – Machinery and Transport Equipment, Manufactured Goods, Food, Chemicals

Imports by Brunei

•Agricultural & processed food products

•Textiles, garments & accessories

•Consumer goods •Drugs & pharmaceuticals

•Auto parts •Milk products

•Building Materials

Sectors of Cooperation

TOPIC RANKINGSDB 2013

RankDB 2012

RankChange in

Rank

Starting a Business 135 137  2

Dealing with Construction Permits 43 88  45

Getting Electricity 29 29 No change

Registering Property 115 113  -2

Getting Credit 129 127  -2

Protecting Investors 117 114  -3

Paying Taxes 22 21  -1

Trading Across Borders 40 36  -4

Enforcing Contracts 158 158 No change

Resolving Insolvency 46 44  -2

•Doing Business’ Rank – 79th out of 183 Countries

Rankings

•Global Competitiveness Index Rank – 28th out of 142

Countries with a score of 4.8 out of seven

GCIR

Eradicate extreme poverty and hunger

Achieve universal primary education

Promote gender equality and empower women

Reduce child mortality

Improve maternal health

Combat HIV/AIDS, malaria and other disease

Ensure environmental sustainability

Develop a global partnership for development

MDG - Brunei

•Based on Brunei Darussalam’s Household Expenditure Survey 2005, absolute deprivation is inexistent•Universal Primary Education

Current Status

Infant Morality Rate

Brunei Darussalam's FTA Policy

Brunei Darussalam views Free Trade Agreements (FTAs) as a vital part of its foreign trade policy to maximise the potentials of free and open trade for its people in an ever-globalising world.

With a relatively free and open trading regime, as well as a small but highly educated workforce, Brunei Darussalam sees engagement on FTAs as an important step in ensuring that its people, goods, services and investments have continued access to wider markets around the world.

Bilaterally, Brunei Darussalam has concluded an Economic Partnership Agreement with Japan (the Brunei-Japan Economic Partnership Agreement or “BJEPA”) and a plurilateral agreement with Chile, New Zealand and Singapore (the Trans Pacific Strategic Economic Partnership or more commonly referred to as the “P4”)

The BJEPA is Brunei Darussalam’s first bilateral free trade agreement. The Agreement was signed by the leaders of both Brunei Darussalam and Japan on 18 June 2007, and entered into force on 31 July 2008. The Agreement is hoped to enhance Brunei Darussalam’s investment climate and encourage foreign direct investments (FDI) through greater predictability and transparency. Market access between Brunei Darussalam and Japan will also be improved in terms of goods (through the reduction of import duties) and services. Marking the long-standing relationship between both countries, the Agreement also has chapters on Energy, Improvement of Business Environment and Cooperation which will help further strengthen bilateral ties to a higher level of partnership.

Brunei signed the P4 on 2 August 2005 and deposited its Instrument of Provisional Application to New Zealand as the depository of the Agreement on 12 June 2006.

The Agreement came into force for Brunei Darussalam on 12 July 2006, and will bring about strategic benefits for all four partners, Brunei Darussalam, Chile, New Zealand and Singapore, and in effect build a bridge between Latin America, the Pacific and Asia.

It will encourage Brunei, Chile, Singapore and New Zealand to pool their expertise, ideas, technology and resources to improve their competitiveness on the global market.

The Agreement will also help advance shared objectives in APEC and the WTO.

Brunei Economy 2013

Economy - overview

•Brunei has a small well-to-do economy that depends on revenue from natural resource extraction but encompasses a mixture of foreign and domestic entrepreneurship, government regulation, welfare measures, and village tradition. 

•Crude oil and natural gas production account for just over half of GDP and more than 90% of exports.

•Per capita GDP is among the highest in Asia, and substantial income from overseas investment supplements income from domestic production.

•The government provides for all medical services and free education through the university level and subsidizes rice and housing.

•A new monetary authority was established in January 2011 with responsibilities that include monetary policy, monitoring of financial institutions, and currency trading activities.

GDP (purchasing

power parity)

•$21.94 billion (2012 est.) 

•$21.38 billion (2011 est.) 

•$20.91 billion (2010 est.) 

•note: data are in 2012 US dollars

GDP (official exchange rate)

•$16.85 billion (2012 est.)

GDP - real growth rate

•2.7% (2012 est.) 

•2.2% (2011 est.) 

•2.6% (2010 est.)

GDP - per capita (PPP)

•$50,500 (2012 est.) •$50,300 (2011 est.) •$50,500 (2010 est.)

•note: data are in 2012 US dollars

GDP - composition

by sector

•agriculture: 0.8

•industry: 66.6%

•services: 32.6% (2012 est

Labor force •198,800 (2010 est.)

Labor force - by occupation

•agriculture: 4.2% 

•industry: 62.8% 

•services: 33% (2008 est.)

Unemployment rate

•2.7% (2010) 

•3.7% (2008)

Household income or

consumption by percentage share

•lowest 10%: NA% •highest 10%: NA%

Budget •revenues: $8.24 billion 

•expenditures: $5.52 billion (2012 est.)

Taxes and other

revenues

•48.9% of GDP (2012 est.)

Budget surplus (+) or deficit (-)

•16.1% of GDP (2012 est.)

Inflation rate

(consumer prices)

•1.2% (2012 est.) •2% (2011 est.)

Commercial bank prime lending rate

•5.5% (31 December 2012 est.) 

•5.5% (31 December 2011 est.)

Stock of narrow money

•$3.594 billion (31 December 2012 est.) •$3.254 billion (31 December 2011 est.)

Stock of money

•$3.374 billion (30 March 2009) 

•$3.046 billion (31 December 2008)

Stock of broad money

•$11.62 billion (31 December 2012 est.) •$10.64 billion (31 December 2011 est.)

Stock of quasi money

•$8.151 billion (30 March 2009) 

•$4.551 billion (31 December 2008)

Stock of domestic

credit

•$4.032 billion (31 December 2011 est.) 

•$3.019 billion (31 December 2010 est.)

Agriculture - products •rice, vegetables, fruits; chickens, water buffalo, cattle, goats, eggs

Industries •petroleum, petroleum refining, liquefied natural gas, construction

Industrial production growth rate

•-5.4% (2008 est.)

Current Account Balance

•$3.977 billion (2009 est.) 

•$3.977 billion (2009 est.)

Exports •$10.67 billion (2008) 

•$8.25 billion (2007)

Exports - commodities

•crude oil, natural gas, garments

Exports - partners

•Japan 45.2%, South Korea 15.9%, Australia 11.4%, Indonesia 8.1%, India 5.7%, China 4.4% (2011)

Imports •$2.61 billion (2008 est.) 

•$2.055 billion (2007 est.)

Imports - commodities

•machinery and transport equipment, manufactured goods, food, chemicals

Imports - partners

•Singapore 27.4%, India 15.4%, China 12.8%, South Korea 10.1%, Malaysia 9.4%, Germany 7.9% (2011)

Debt - external

•$0 (2005)

Exchange rates

•Bruneian dollars (BND) per US dollar - 1.25 (2012 est.) 1.2579 (2011 est.) 1.3635 (2010 est.) 1.45 (2009)

Fiscal year •1 April - 31 March